Note 3. Accounts Receivable - Project Revenue and Project Costs

ENEC and FANR Projects

          The total accounts receivable from the ENEC and FANR contracts was approximately $0.4 million and $0.6 million at March 31, 2013 and December 31, 2012, respectively. These amounts due from ENEC and FANR represent approximately all of the total accounts receivable reported at March 31, 2013 and December 31, 2012.

          Total unbilled accounts receivable included in the accompanying consolidated balance sheets and reported in accounts receivable of approximately $0.2 million at March 31, 2013 and December 31, 2012 is for work that was billed to our clients in April 2013 and January 2013, respectively. Foreign currency transaction exchange gains (losses) were not significant for the three months ended March 31, 2013 and 2012, respectively, which is reported in the caption “other income and expenses” on the accompanying consolidated statement of operations. Translation gains and losses for the three months ended March 31, 2013 and 2012 were also not significant.

          Travel costs and other reimbursable costs under these contracts are reported in the accompanying statement of operations as both revenue and cost of consulting services provided, and totaled approximately $28,000 and $142,000 for the three month periods ended March 31, 2013 and 2012. The total travel and other reimbursable expenses that have not been reimbursed to us and are included in total accounts receivable reported above from our consulting contracts were not significant.

          We expect to continue to provide strategic advisory services to ENEC and FANR and we also expect the variation of revenue we earn from these contracts to continue. Under these agreements, revenue will be recognized on a time and expense basis. We periodically discuss our consulting work with ENEC and FANR, who review the work we perform and our reimbursable travel expenses, and accept our monthly invoicing for services and reimbursable expenses.